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Tax Management Consulting for a U.S.-based Multinational Company

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Abstract

A U.S.-based multinational company needed to transform its global finance processes, systems and information resources to become more efficient in the regions where it operates. Deloitte Tax LLP helped the Company identify tax planning opportunities and address the requirements for tax accounting controls and processes. These improvements helped facilitate the tax department's needs for compliance and planning. Equally important, the improvements served to support the company in managing its tax examinations around the world.

The Challenge

The company sought to enhance its global finance and accounting area and quickly realized that it would require a multi-year investment of money, time and effort. At the same time, the company recognized that its tax function is one of the largest end-users of the accounting and finance information produced by global finance. Therefore, it wanted to integrate the tax perspective into the transformation effort from the outset of the project.

The cross-functional project required a tested yet flexible approach to tackling significant issues affecting tax, accounting, technology, security and controls on a global scale.

How We Helped

The client had developed a strong relationship with various groups within Deloitte and understood the value Deloitte can bring to an intricate, cross-functional and global engagement. After the client recognized the complexity of its initiative, it realized that Deloitte Tax LLP had the depth of experience across multiple disciplines, as well as a team of talented professionals, to lead the tax-related aspects of the project to successful outcomes.

Solution

How We Helped:

We applied our Enterprise Value Delivery (EVD) methodology to guide the tax portion of a finance transformation. EVD is supported by an extensive set of tax-related deliverables — from tax-scoping documents to tax data blueprints and functional requirements — and is designed to be the foundation of the initiative from the outset. The methodology's activities and deliverables helped the client's tax team become tightly integrated with the other project areas.

We helped the company redesign the tax organization to align closely with the company's global operations and future expansion plans. The global nature of the initiative required a focus on optimized tax processes and approaches that would work seamlessly in the United States or in other countries in which the client operates.

Lessons Learned:

As a result of the company's foresight to involve its tax leadership and function in the planning and execution of a global finance transformation, the client achieved not only significant tax savings but also better visibility into its tax risks worldwide.

Before undertaking this transformation, the client did not fully understand critical tax requirements in legal entity accounting or the appropriate automation and reconciliation of intercompany transactions. Today, the company is putting in place not only an Enterprise Resource Planning (ERP) system, but the processes, controls and training to ensure the precise level of detail required by a high-performing tax function.

The company now has the flexibility and tools to deal readily with changes in tax law, business structures and the business environment to take advantage of tax planning opportunities that few organizations contemplate today.

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